Keep Dancing… Until Yields Break It

Higher for longer

Fiscal strains aren’t just U.S. – France faces a Sept 8 confidence vote, with deficits >5% and risk of fresh elections. The U.K. budget will highlight fiscal gaps this fall, while Japan leans on expansionary policy post-elections. Net takeaway: structural inflation risk, higher term premiums, and looming equity headwinds from higher rates. (GS, Privorotsky)